Kraken Pursues European Banking License, Reports Indicate

3 Min Read Tags:

  • Kraken aims to secure a full banking license in Europe, targeting Lithuania as the primary jurisdiction.
  • This strategic move could make Kraken the first crypto exchange with a full banking license in Europe, broadening its financial service offerings.
  • The initiative follows a regulatory path similar to fintech company Revolut, which acquired a specialized banking license in Lithuania in 2018.
  • Kraken’s parent company, Payward, is expanding its regulatory presence globally, having recently gained VARA authorization in the UAE and access to the U.S. Federal Reserve’s payment infrastructure.
  • The company is preparing for an IPO in the U.S., despite market conditions temporarily delaying its listing plans.

Kraken Sets Sights on European Banking License

In an ambitious step toward expanding its financial services, cryptocurrency exchange Kraken is actively pursuing a full banking license within Europe. According to CoinDesk, Kraken has identified Lithuania as the key jurisdiction for obtaining this license. This move could position Kraken as the first cryptocurrency exchange with such status across Europe.

Following Revolut’s Footsteps

Kraken appears to be mirroring the regulatory approach of fintech giant Revolut. Back in 2018, Revolut secured a specialized banking license from the Bank of Lithuania. This allowed them to offer current accounts, consumer credit services, and stock trading within the European Economic Area. If successful, Kraken would follow suit by providing an extensive range of banking services under this new licensing framework.

Strategic Expansion of Regulatory Approvals

This pursuit is part of a broader strategy by Payward, Kraken’s parent company. The goal is to expand regulatory approvals across various countries. Earlier this year, Kraken Financial became the first digital asset bank to gain access to U.S. Federal Reserve payment infrastructures. Additionally, they have obtained authorization from VARA in the United Arab Emirates.

Aiming for Public Listing Amid Market Challenges

While preparing for an initial public offering (IPO) on the U.S. stock market has been temporarily postponed due to market conditions since March 2026, co-CEO Arjun Sethi assures that their commitment toward becoming public remains steadfast.
This multifaceted strategy underscores Kraken’s long-term vision: acquiring all necessary licenses either through establishing new structures or acquiring existing businesses across different regions over the next decade.
Overall, these developments highlight significant advancements both for Kraken and potentially broader adoption within cryptocurrency markets—marking another step forward toward integrating traditional finance with digital asset innovation.

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